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HSH Nordbank sues UBS over mortgage securities losses

HSH Nordbank sues UBS over mortgage securities losses

Germany's HSH Nordbank AG said Tuesday it is suing Swiss bank UBS AG over losses stemming from a US$500 million (euro337.4 million) portfolio of mortgage securities.
HSH, which specializes in shipping finance, bought collateralized debt obligations, or CDOs, that Zurich-based UBS structured and sold in 2002.
The German bank didn't disclose how much it seeks from UBS in a U.S. court, and a spokesman for the bank wasn't immediately available for comment.
A spokesman for UBS said the bank denies all allegations and intends to defend itself vigorously against the HSH claims.
"Our counterparty_HSH Nordbank_is a professional and sophisticated market participant," UBS spokesman Serge Steiner said.
The suit comes as UBS struggles under the weight of over US$18 billion in losses trading mortgage-securities, which has tipped it to a full-year net loss.
UBS shareholders are scheduled Wednesday to vote on a 13 billion Swiss franc (US$11.9 billion; euro8.06 billion) cash injection from the Singapore government's fund and an unnamed Middle East investor to shore up the bank's capital.
HSH Nordbank is one of many German banks, such as WestLB and SachsenLB, suffering from mortgage-related investments gone sour.
UBS shares rose 2.3 percent to 37.40 Swiss francs (US$34.39; euro23.20) in Zurich.


Updated : 2021-04-14 22:14 GMT+08:00